CPG brands are more attractive to acquirers if growth channels remain untapped
Shaan Puri · How To Get the Most Out of Every Event and the World Premier of Southern Sam’s Sticky Icky · Nov 15, 2021 · at 36:34
Shaan Puri explains M&A strategy for direct-to-consumer and consumer packaged goods (CPG) brands.
“You actually almost want to leave some dry powder for the acquirer. You want to go to the acquirer and say, yeah, we're doing amazing. And we have, we don't even know how to do retail. You guys know that, right? You guys know, you got a buddy you play golf with who does target, who does I guess Safeways nationwide on the, you know, you have the guy in the Rocky mountain region for whole foods. He's your ex frat buddy. Oh, fantastic. Like you should just buy this and then boom, you already have your growth story baked in of how you're going to improve this. And so that actually helps you sell the companies to have that dry powder of what can the acquirer do? They don't want to see a lemon that's just been squeezed all the way, all the juices out. Cause then it's all priced in.”
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